Getting Sorted....2010

2010bubba

Hi there all DFW Newbie here, have been following this forum for couple of month's now, and have found this very helpful indeed to both my partner and I.

Firstly needed to face up to a few debt issue's we have, and thanks to this forum and just by following the offered advice from you's on here, have turned our finances around since January. Now we are into our third month of a DFW and the path does look clearer, sorted out CC Apr's and put in order of highest, switching Utilities Insurance so on and so on. We unfortunately are with the dreaded Halifax and it is since there new overdraft policies that we have sat down and tried to budget better, which with a few cutbacks and the old style thread (which I love) we are climbing the mountain a bit. We do go into our authorised OD every month, but this is more down to the fact of trying to catch up with past obviously overspending (mainly recent move of house renovation work etc)..as an example last month went into it about £400 less so we must be doing something right. With careful planning and budgeting we should be back in the black in about 5 months.


So although we are managing our 2 CC's/ 1 Loan because we both work and pay as much as we can afford, Does anyone else think we are better to plough all into clearing the overdraft asap because of there high charges, and maybe for couple of months just make the minimum payment on our CC's and then eventually switch banks. Any thoughts.......as to whether this is the best way forward. Thanks

Keep up the good work everybody, as there are probably a lot of silent followers on here, who are being helped everyday...x

dancingfairy

Generally people say you should pay off the debt with the highest interest rate first - if you are getting lots of charges for your current account and the other debt is at a relatively low interest rate then yes it would make sense to make the minimum payments to the cards and overpay the overdraft.
Have you got any space on the cards? would they let you do a balance transfer so you owe the card companies and they pay off the overdraft? this might work if they gave you a decent rate to do it.
Good Luck - it sounds like you are well on your way.
df

2010bubba

Thanks, DF.. will look into the rate's on the cc see if I could shuffle about a bit, thanks for response.

bubba